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HighChem Insights November 15, 2022

President Ushio Taka & Director Yuichi Taka: A Father-Son Dialogue “The Path HighChem Walks”

In “We are the BRIDGE”, we will launch “HighChem Insights” that focuses on the inside of HighChem. This project starts with a father-son dialogue between President Ushio Taka and Director Yuichi Taka of the Sustainability Department.

The president, who came to Japan as a student from China, started a small chemical consulting company about 30 years ago, which is the predecessor of HighChem. Such a small company has now grown to not only play an active role as a bridge between Japanese and Chinese chemical trading companies, but also to have a manufacturer function that conducts catalyst research and development. We also talked to Director Yuichi about what the driving force behind this was, and what is the path that HighChem will walk in the future?

In this dialogue, we hope you can get a feel of the basic values and important parts of HighChem!

——What is the secret to HighChem’s growth so far?

Each person utilized the HighChem platform and “founded” their own

President: I was lucky (laughs). It may sound like a joke, but from the time I started the previous company, 21st Century Trading, “the timing was good when a structural change began in the chemical industry of both countries due to the background of Japan’s bubble collapse and China’s economic growth, and a large demand began to emerge in this interval”. That’s why I was lucky. For example, if you start “HighChem” at this timing now, it will definitely not go the same way. So, there is a large demand between China and Japan, and I think it comes down to the fact that we were able to capture that need well and connect it to business. Of course, it’s also a big deal that we were able to create a platform called HighChem. The employees utilized this platform and have “founded” in their respective areas of expertise. Each of them aimed for self-realization within this platform, grew through competition, and found their own value. Thanks to that, I think I was able to grow the company without having to do it myself.

Change what needs to be changed, leave what needs to be left

Director Yuichi: There is no doubt that the culture and climate of the company that the president built up created the scale of this company so far. HighChem has created a system where we compete with each other, help each other shine, and the results are immediately evaluated. I think this system was suitable for the temperament of us Chinese who have always been in competition since childhood. However, while China has grown its economy significantly through 40 years of reform, opening up and industrialization, it has continued to put a heavy burden on the global environment, such as becoming the world’s largest CO2 emitter. On the other hand, Japan is looking for a chance to rise again from a state of low-altitude flight for 30 years after the bubble burst. And, as the movement to aim for a sustainable society is becoming full-scale globally, in order to become a company that confronts major social issues such as climate change and environmental pollution and shapes the chances hidden in these issues, for this “individual shop” the time has come when we have to change the way we are, and we have to change what we have to change.

However, on the other hand, “individual shops” are also an excellent system where young employees can experience various jobs and skills as social workers from an early stage. In order to make teamwork stronger, it is essential that each team member has business skills and a wide range of experience, so we will definitely maintain the mechanisms and structures that allow young employees to first aim to become independent as "individual shops." Balance is very important when changing something. We will firmly leave the good parts and review the parts that need to be reviewed.

President:  In the three years of Corona, while other companies were struggling, HighChem’s performance was good even if we couldn’t travel to China as often as before. This was because HighChem had built a network of businesses rooted in China and had built a trustful relationship with customers that “if you are in trouble, you can rely on HighChem and they will help you”. Therefore, by firmly maintaining this system, we may be able to achieve a growth rate of about 5% to 10% in the future. However, if we aim for further growth, the time will have come to make a major change.

Only those who constantly change will survive

Director Yuichi:  Looking back at history, no matter how strong a group or organization was, the moment they thought, “It’s okay to maintain the status quo,” growth stopped and they declined in an instant. The same is true for companies. They need to constantly innovate and find not only new products and customers, but also new ways of running a company and business models themselves. As Darwin proved, it is not the smart or strong people who survive, but those who constantly change. This is a natural law and the truth of this world. Peace does not come to humans who only desire unchanging peace, and those who are prepared to accept that everything changes are the ones who can spend their days in peace. 

——What are the challenges for further growth?

How to gather leaders

President:  In projects like the ones we are working on in the Sustainability Department, such as C1 Chemicals, batteries, and biodegradable materials, no matter how excellent a person is, it is impossible to work on it alone, and a highly organized team is needed. And a team cannot do without a leader. So one of the challenges for the future is how to gather personnel as leaders within the company. There aren’t many people who can lead a big business. How to nurture and attract attractive personnel who can become such leaders from within and from outside is indispensable for the future growth of HighChem.

"Rewarding work" and “Good salaries” and above all “Vision”

Director Yuichi: To encourage good personnel in Japan and China want to join HighChem, it will become more important to create a workplace atmosphere where motivated people can easily exert their power, and to establish a personnel system and salary system where efforts are properly evaluated. So, what a manager should do is to show “rewarding work” and “good salaries”. However, that alone cannot gather or nurture people. High-profit temperament and good salaries are means, not ends. A truly strong company is a company that continues to show attractive significance and value to society and humans. That’s why the most important job for the management team, especially young me, is to show the vision of HighChem.

We have to decide what we have been, from the past to the present, why we have existed, and in the future, what significance we will make the world feel and what value we will try to show. It is important to keep telling this, not just once. Even if at first it feels like a dream story or a story of a world that has nothing to do with oneself, people who have become aware of it by repeating it, seeing it, hearing it, and acting on it as their own (leaders), row the boat with all their might in the same direction as the company’s vision. Those who see it will move their actions from the next to the next. Only by doing so can it become a high-profit company with a good salary.

——Where is HighChem aiming for in the future?

First, remove the barriers created in the past

President:  In the future, EC will definitely progress in chemicals, and trading companies that only focus on trading areas and can only be heard will be eliminated. Currently, in the structure of HighChem, we have grown by successfully integrating half as a trading company and half as a manufacturer function. However, in the past, we divided the SEG business and the trading company function, and it is hard to say that we were able to integrate them well. It is a job that we have to do in the future to remove this barrier.

Director Yuichi:  I think removing this barrier is one of the jobs I have to focus on in the future. Humans have the work and pride they have cultivated so far. So changing this barrier is the part that takes the most effort and takes time. But I’m going to take it in a way that says, “That kind of barrier is not good. Instead of spending time on things like protecting your current position and existing trading area, let’s put effort towards a more fun direction.” I want to focus on the work of how to remove the barrier to create rewarding work and how to remove the barrier to get a good salary.

Also, in order for everyone to be happy in the end, it is very important that the oars that are rowing the boat that we are all riding in are all facing the same direction. Half of the people may laugh when they hear a dream story out of the blue, but half will follow. People who laugh first should never think that everyone is as pessimistic as they are (laughs). Now, the vision we are preparing to show and the new medium-term plan from next year, even the first half of the people who were laughing will work hard to make themselves smile from the bottom of their hearts in the end.


Identifying the technologies that the world truly needs

President: Right now, the size of the opportunity that HighChem has is far greater than we realize. We already have clear weapons in the form of SEG® technology, which could become a representative of carbon recycling technology, and the next-generation material platform “HighLact®”. And in the future, we need to gather technologies and resources from around the world that can be used to solve social issues such as climate change and environmental pollution, and create businesses while presenting solutions.

Director Yuichi: The words SDGs and Sustainability are popular, but technologies that will become obsolete if the trend changes cannot be called technologies. We need to create reliable technologies and business models that are not influenced by trends. That’s why what we always need to be aware of is rationality. There is not a single technology that is prevalent in the world that lacks rationality. Technologies developed while lacking rationality by being pulled by temporary trends and ignoring costs and the true needs of customers will eventually be eliminated and future development cannot be expected. I believe that HighChem must always be conscious of “rationality” in advancing its business.

President:  From now on, we will contribute to both the environment and humans while solving problems between Japan and China. I am convinced that there is no other trading company that can do this except HighChem. 

——Will you continue to operate based in Japan and China in the future?

From Japan and China to the world, and to space

Director Yuichi: We don’t intend to change the fact that we are a “bridge”, but we don’t think we need to stick to Japan and China. When the space age arrives, we could also become a bridge between “space” and “earth”.

President: Even if it’s not that far off, in addition to the United States where we already have a branch, for example, Indonesia and Europe are realistic options where we can expand based on the EV technology we have. In that sense, batteries will support the development of HighChem from various angles in the future. As for EVs, we want to actively promote expansion to countries and regions where the groundwork for business can be immediately deployed. Also, in the next long-term vision, we believe that we need to show a clear plan for global expansion.


——What will HighChem not change in the future?

What doesn’t change is the value as a “bridge”

Director Yuichi:  It’s definitely the “bridge” part. We don’t intend to change the value of “We are the BRIDGE”. It’s important not to regard only one way of doing things, thinking, or values as always correct. If there is one side, there is another side on the other side of the river, and thinking through how to proceed by understanding the values of both. I think this is the true value of HighChem. It’s a very tough position not to look, speak, or think from only one side, and you have to be as “adult” as possible. That’s why value is born to us. As everyone recognizes that they are in such a position and the more they grow, the more they will rely on us and trust will be born.

And for everyone to become such a “bridge”, it is very important to have a more mature spirit and a broad mind. It’s a basic thing, but a healthy mind dwells in a healthy body, and being healthy is very important. I think that if you keep your body healthy, everyday trivial things will change. Since the mind and body are connected, if you neglect one side, the other side will not do well.


Keep chasing social needs, challenges and continue to create

President:  After all, keep chasing social needs, challenge and continue to create. That’s the attitude of contributing to society and humans. And for each individual, it is to keep making the people around you happy. Happiness for humans is to be a person who is relied on by those around you. Also, isn’t it possible to find a sense of being recognized and needed in the group to which you belong that gives you a sense of life and satisfaction? So each and every one of us, first of all, should be healthy, and respect the people around us. It seems obvious, but if people who can do this gather in a company, I believe that any dream can come true.

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